When using the SBTi tools to model targets, the percentage reductions output are the minimum reduction values. Companies are encouraged to set targets that are more ambitious than the minimum percentage reductions output. In some cases there will be differences in the minimum target ambition output by different methods for a given company. This is due to differences in target formulation as well as differences in the acceptable reduction pathways themselves; for example, different scenarios within the 1.5°C scenario envelope identified by the SBTi vary in linear reduction rate (2020-2035) from 4.2% to 6%. In addition, the minimum ambition required for a sector by the Sectoral Decarbonisation Approach (SDA) may be more or less ambitious than the absolute reduction rate for a 1.5°C target.
To ensure compliance with the carbon budget, companies should use the most ambitious decarbonisation scenarios and methods that lead to the earliest reductions and the lowest cumulative emissions. A company should consider multiple methodologies and select the methodology and target that delivers the most ambitious emissions reductions to demonstrate sector leadership. The choice of methodology may also be influenced by practical considerations, such as the availability of input data for the base year and target year.